The Ratio That Measures the Number of Times That Operating

question 47

Multiple Choice

The ratio that measures the number of times that operating income can cover interest expense is the:

• A)leverage.
• B)rate of return on total assets.
• C)debt ratio.
• D)times-interest-earned ratio.

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Definitions:

Farm Price Supports

Government subsidies designed to maintain the income of farmers by stabilizing the prices of agricultural products.

Corporate Farms

Large-scale agricultural operations owned or operated by companies rather than individuals or families, often involved in intensive farming practices.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for human consumption and use.

Productive Sectors

Parts of the economy that are directly involved in producing goods and services, contributing to the economic output.